APSSRP Stakeholder Meeting For Transmission Planning FERC Order

APS/SRP Stakeholder Meeting For Transmission Planning FERC Order 890 SRP Attachment K APS Attachment E SRP Facility – Scottsdale, AZ December 15 th, 2015 9: 00 – 11: 00 A. M. 12/15/2015 APS/SRP Stakeholder Meeting for Transmission Planning 1

Agenda 1. Welcome, Introductions, and Stakeholder Meeting Overview 2. Status of Action Items – June 18, 2015 Joint APS/SRP 2 nd Quarter Public Planning Meeting 3. Purpose of Today’s Meeting – SRP Planning 4. Purpose of Today’s Meeting – APS Planning 5. Stakeholder Questions/Comments 6. Action Items Review 12/15/2015 APS/SRP Stakeholder Meeting for Transmission Planning 2

2. Status of Action Items • There were no Action Items from the Joint APS/SRP 2 nd Quarter Public Planning Meeting held on 6/18/2015 12/15/2015 APS/SRP Stakeholder Meeting for Transmission Planning 3

3. Purpose of Today’s Meeting • Per SRP’s OATT, SRP conducts the 4 th quarter public planning meeting to: – Review its current transmission study plan – Present a draft of its Ten Year Transmission Plan for the following calendar year for stakeholder review and comments – Review economic planning study request submitted by October 31 12/15/2015 APS/SRP Stakeholder Meeting for Transmission Planning 4

3. A. – SRP’s Study Plan • SRP has two distinct, but related, transmission study plans – NERC Compliance – SRP’s budgetary planning • The difference between the two plans: – NERC Compliance studies based on old TPL-001 – TPL-004 Standards: 3 seasons/scenarios, 2 discrete years (near and long term) – NERC Compliance studies based on new TPL-001 -4 Standard: 2 seasons/scenarios, 3 discrete years (near and long term) – SRP’s annual planning: 1 season, 10 consecutive years (first 6 years are for budget, remaining 4 for compliance purposes) • The similarities between the two plans: – Similar load forecasts, demand response – They are reliability studies 12/15/2015 APS/SRP Stakeholder Meeting for Transmission Planning 5

3. A. 2015 NERC Compliance Study Methodology • Coordinated Base Cases (Seed Cases) • • 2016 – AZ coordinated case used to build 2016 -2019 2020 – AZ coordinated case used to build 2020 -2023 2024 – AZ coordinated case used to build 2024 -2025 The intermediate cases are APS/SRP coordinated – SRP NERC Compliance cases • 2017 and 2021 • 69 k. V transmission models incorporated • Most up-to-date forecasts for peak summer loads 12/15/2015 APS/SRP Stakeholder Meeting for Transmission Planning 6

3. A. 2015 NERC Compliance Study Methodology NERC Compliance Studies Cases • 2017 & 2021 Summer Peak & Off-peak Cases and 2020 Summer Peak Case • 2017 & 2021 Off-peak Cases are Low Load (winter conditions) and High Import (shoulder cases with low generation in the Phoenix Metro Area) • Following analyses are conducted: – Thermal analysis – Post-Transient – Transient Stability – Short Circuit 12/15/2015 APS/SRP Stakeholder Meeting for Transmission Planning 7

3. A. NERC Compliance Studies NERC STANDARD Type of Studies Completed TPL-001 (N-0) and TPL-001 -4 P 0 Thermal Transient Stability Post-transient Short Circuit 2017 Peak , Low Load and High Import X X 2020 Peak X X 2021 Peak , Low Load and High Import X X TPL-002 (N-1) and TPL-001 -4 P 1, P 2 Thermal Transient Stability Post-transient Short Circuit 2017 Peak , Low Load and High Import X X 2020 Peak X X 2021 Peak , Low Load and High Import X X 12/15/2015 APS/SRP Stakeholder Meeting for Transmission Planning 8

3. A. NERC Compliance Studies NERC STANDARD Type of Studies Completed TPL-003 (N-2) and TPL-001 -4 P 3 -P 7 Thermal Transient Stability Post-transient 2017 Peak , Low Load and High Import X X X 2020 Peak X X X 2021 Peak , Low Load and High Import X X X TPL-004 (N-X) and TPL-001 -4 Extreme Events Thermal Transient Stability 2017 Peak X X 2020 Peak X X 2021 Peak X X 12/15/2015 APS/SRP Stakeholder Meeting for Transmission Planning Post-transient 9

3. A. NERC Compliance Results • 2015 Results – 2015 NERC Compliance Studies were finalized by beginning of December of 2015 12/15/2015 APS/SRP Stakeholder Meeting for Transmission Planning 10

3. A. – Customer Load/Resource Updates • No customers provided load/resource data in September 2015 • SRP received no stakeholder proposals in 2015 or prior to this meeting. • If you like to provide information for the future SRP planning cycles, please see critical dates on the next slide 12/15/2015 APS/SRP Stakeholder Meeting for Transmission Planning 11

12/15/2015 APS/SRP Stakeholder Meeting for Transmission Planning 12

3. B. SRP Ten Year Plan 2016 -2025 • Draft - Still subject to change until January 31 st filing 12/15/2015 APS/SRP Stakeholder Meeting for Transmission Planning 13

3. B. 2016 -2025 Ten Year Plan Methodology • Coordinated Base Cases – See NERC Compliance Methodology slide #6 • 69 k. V transmission models incorporated • Most up-to-date forecasts for peak summer loads • TPL-001 & TPL-002 Studies Conducted for all ten years 12/15/2015 APS/SRP Stakeholder Meeting for Transmission Planning 14

NAVAJO GS 500 k. V System MOENKOPI (APS) NEVADA YAVAPAI (APS) MARKETPLACE Mc. CULLOUGH ELDORADO 2016 -2025 CEDAR MT (APS) MEAD DUGAS (APS) MORGAN (APS) 230 k. V CHOLLA (APS) SUGARLOAF PERKINS CORONADO WESTWING MOHAVE PINNACLE PEAK (APS) 345 k. V RUDD PALO VERDE HASSAYAMPA TEP JOJOBA 2024 SPRINGERVILLE (TEP) KYRENE SILVER KING BROWNING PINAL WEST DUKE PINAL CENTRAL SUNZIA (SWPG) Central New Mexico 2021 EXISTING 500 k. V SUBSTATION EXISTING LINES FUTURE 500 k. V SUBSTATION FUTURE LINES All Changes since January 2015 Ten Year Plan shown in red 12/15/2015 APS/SRP Stakeholder Meeting for Transmission Planning 15

TO W. A. PINNACLE PEAK TO APS PINNACLE PEAK 230 k. V System SRP PINNACLE PEAK W. A. P. A. WESTWING 2016 -2025 DEER VALLEY (APS) W. A. P. A. AGUA FRIA ALEXANDER W. A. P. A. PAPAGO BRANDOW GOLDFIELD THUNDERSTONE WHITE TANKS ROGERS RUDD TO APS OCOTILLO ORME LIBERTY (W. A. P. A. ) WARD To Silver King Line Reconfiguration BROWNING 2020 CORBELL KYRENE RS-27 ANDERSON DOUBLE CIRCUIT, PHASE TIED LINE SANTAN (TBD) BALL TBD KNOX TBD EXISTING 230 k. V CIRCUIT RS-28 (2017) FUTURE 230 k. V CIRCUIT EXISTING 230 k. V SUBSTATIONS FUTURE 230 k. V SUBSTATIONS 2017 PFISTER TBD 2021 DINOSAUR 2021 Price Road Corridor Project GENERATING STATION SCHRADER ABEL DESERT BASIN TO SANTA ROSA (APS) RANDOLPH TO CASA GRANDE (APS) PINAL CENTRAL All Changes since January 2015 Ten Year Plan shown in red 12/15/2015 APS/SRP Stakeholder Meeting for Transmission Planning 16

MORMON FLAT Eastern Mining Area ROOSEVELT HORSE MESA 2016 -2025 STEWART MOUNTAIN FRAZIER TO SILVER KING 500 k. V SILVER KING 230 ELLISON PINTO VALLEY MIAMI GOLDFIELD 230 k. V TO THUNDERSTONE MOONSHINE 115 k. V CARREL SPURLOCK CARLOTA Reroute 2017 SUPERIOR TRASK RAY FUTURE SUBSTATION PINAL OAK FLAT KNOLL MORRIS KEARNY EXISTING SUBSTATION HAYDEN BONNEYBROOK (APS) GENERATING STATION ASARCO FUTURE LINE EXISTING LINE COOLIDGE (W. A. P. A. ) TO APACHE (AEPCO) TRANSFORMER All Changes since January 2015 Ten Year Plan shown in red 12/15/2015 APS/SRP Stakeholder Meeting for Transmission Planning 17

3. B. SRP changes since 2015 Plan • Completed Projects – Browning - Rogers 230 k. V line • New Projects – None • Removed Projects – Hassayampa – Pinal West 500 k. V Jojoba Loop-in • Removed from SRP’s plan since TEP is the driver of this project 12/15/2015 APS/SRP Stakeholder Meeting for Transmission Planning 18

3. B. SRP changes since 2015 Plan • Delayed Projects – Eastern Mining Expansion was 2019, now TBD – Sun Zia was 2018, now 2021 – Silver King-RS 29 230 k. V was 2019, now TBD – RS 29 230 k. V substation was 2019, now TBD – RS 29 -RS 30 115 k. V was 2019, now TBD – RS 30 115 k. V substation was 2019, now TBD 12/15/2015 APS/SRP Stakeholder Meeting for Transmission Planning 19

3. C. – 3. E. Transmission Planning Study Process SRP evaluates plan submittals or alternatives according to the following flowchart. 12/15/2015 APS/SRP Stakeholder Meeting for Transmission Planning 20

3. C. -E. SRP Planning - Study Requests • Generation Interconnection Requests • Transmission Service Requests • Economic Study Requests 12/15/2015 APS/SRP Stakeholder Meeting for Transmission Planning 21

3. C. SRP Planning –Interconnection Requests (Transmission) • Currently there are no Transmission Interconnection Requests under study 12/15/2015 APS/SRP Stakeholder Meeting for Transmission Planning 22

3. C. Interconnection Requests (Generation) A. EAST VALLEY 2 - Solar Projects 98 MW B. EMA 115 k. V AREA 2 - Solar Projects 60 MW A B Generation Interconnection Requests listed on this slide are for SRP solely owned transmission 23 12/15/2015 APS/SRP Stakeholder Meeting for Transmission Planning

3. D. -E. SRP - Transmission Service and Economic Study Requests • SRP received two Transmission Service Requests • There are no Economic Study Requests 12/15/2015 APS/SRP Stakeholder Meeting for Transmission Planning 24

3. F. Submittal of Additional Study Plan Proposals • If you have study ideas for SRP to consider, please send a detailed message to: SRP. Transmission. Planning@srpnet. com • Please include (at a minimum): – Your Name/Company/contact info (e-mail/phone #) – What the purpose of the study request is? And how will the results be used? – What year(s) and season(s) is of interest? – What type of study – reliability (power flow only? ), economic? 12/15/2015 APS/SRP Stakeholder Meeting for Transmission Planning 25

3. G. SRP Planning – Comments & Questions • Stakeholder comments/questions on 2015 Study Results 12/15/2015 APS/SRP Stakeholder Meeting for Transmission Planning 26

APS 4 th Quarter Stakeholder FERC Order 890 APS Attachment E

4. A. APS’s Study Plan • APS has two distinct, but related, transmission study processes – NERC Compliance – APS’s Annual Planning • The difference between the two plans: – NERC Compliance: • Minimum 2 seasons, 2 discrete years (near and long term); all cases examine P 0 -P 7 (formerly Category A – D) – APS’s annual planning: 1 season, 10 consecutive years; N-0 and N-1 – NERC Compliance is now starting point for annual plan • Working on combining TPL assessment and Annual Planning for future years – TPL assessment results utilized for 10 yr plan – 10 Yr plan fills in the gap years 28

4. A. NERC Compliance Results? • 2014 Results? – APS is fully compliant with NERC Transmission Planning Standards • 2015 Progress? – – Case building complete DYD files complete Study work being finalized Report writing started 29

4. A. 2015 NERC Compliance Study Methodology NERC Compliance Studies Cases • 2016, 2020 & 2024 Summer Peak Cases – Sensitivity case has higher import, and lower metro internal generation • Off-peak Case is Low Load and High Import (shoulder case with low generation in the Phoenix Metro Area) – 2017 Light Spring case; one case in the near-term – High ratio of renewable generation to overall generation on-line – Sensitivity case is higher export, more internal metro generation on-line • Following analyses are conducted: – Thermal and voltage – Short-Circuit – Transient Stability 30

4. A. 2015 NERC Compliance Studies • TPL-001 -4 combined previous TPL-001 through TPL-004 – No longer Category A, B, C, & D – Now P 0 through P 7 • Covers all scenarios from N-0 to N-1 -1 • Also includes Multiple Contingencies due to relay or breaker failures – Requires more cases/scenarios – Includes short-circuit analysis (2024) 31

4. A. APS TPL Plan for 2015 Study Near-Term Year 1 (2016) 2 (2017) Long-Term 3 4 5 (2020) Peak Load (Summer) X X Peak load sensitivity X X Off-Peak (Spring) X Off-Peak sensitivity X Peak Load (Summer) X Peak load sensitivity X Off-Peak (Spring) X Off-Peak sensitivity X 6 7 8 9 (2024) X Steady State Stability 32 10

4. A. 2016 -2025 Ten-Year Plan Methodology • Coordinated Base Cases – 2015 HS – SASG/AZ coordinated case used to build heavy summer 2016 -2019 – 2020 HS – AZ coordinated case used to build heavy summer 2021 -2023 – 2024 HS – SWAT/AZ coordinated case used to build heavy summer 2025 (same SWAT updated case submitted to West. Connect) – The intermediate cases are APS/SRP coordinated • 69 k. V transmission models incorporated • Most up-to-date forecasts for peak summer loads • N-0 and N-1 analysis conducted for all ten years Note: AZ coordinated cases also included IID 33

4. A. 2016 -2025 Ten-Year Plan Status • AZ Seed cases are complete (2016 HS, 2020 HS, 2024 HS) • Intermediate cases are complete • Ten-Year plan studies are being finalized • Ten-Year Plan filed by the end of January • BTA Studies will also be completed and filed – 10 th Year Snapshot & Extreme Contingency – RMR study – no triggers were identified for PHX/Yuma 34

4. A. Customer Load/Resource Updates • APS has all load/resource data from Network Customers and has incorporated them into the base cases • APS received no stakeholder proposals in 2015 or prior to this meeting • Should you like to provide information for the future APS planning cycles, please see critical dates on the next slide 35

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4. B. APS Ten-Year Plan Projects 20152024 Transmission Plan Filed on Jan. 30, 2015 (updated with 2015 activities) 37

4. B. Changes since 2015 Plan was filed • Three projects completed – Bagdad 115 k. V Relocation – Hassayampa-North Gila #2 500 k. V line • Energized May, 2015 • New Path 49 (EOR) rating of 10, 100 MW – Palm Valley-Trilby Wash 230 k. V line • Energized April, 2015 • Trilby Wash now providing new source for northwestern part of valley • Actively under construction – Palo Verde-Delaney-Sun Valley 500 k. V – Sun Valley-Trilby Wash 230 k. V – Mazatzal 345/69 k. V substation • In-service date change – Ocotillo Modernization Project in-service pushed back to 2019 38

In-Service: � Hassayampa-North Gila 500 k. V #2 Line � Bagdad 115 k. V Line Relocation 2016: � Delaney-Palo Verde 500 k. V Line � Delaney-Sun Valley 500 k. V Line 2017: � Mazatzal 345/69 k. V Substation 2018: � Morgan-Sun Valley 500 k. V Line 2019: � Ocotillo Modernization Project 39

In-service: � Palm Valley-Trilby Wash 230 k. V Line 2016: � Sun Valley-Trilby Wash 230 k. V Line 2019: � Ocotillo Modernization Project 2026: � Morgan-Sun Valley 230 k. V Line 40

In-service: � Hassayampa-North Gila 500 k. V #2 Line 2018: � North Gila-Orchard 230 k. V Line 41

Bulk Transformer Additions/Replacements Description Year Two 100 MVAR Reactors at Four Corners 230 k. V (in-service) 2015 Trilby Wash 230/69 k. V Transformer (in-service) 2015 Sun Valley 500/230 k. V Transformer 2016 Delaney 500/69 k. V Transformer 2016 Mazatzal 345/69 k. V Transformer 2017 North Gila 500/230 k. V Transformer 2018 Orchard 230/69 k. V Transformer #2 2018 Saguaro 230/69 k. V Transformer 2021 Prescott 230/115 k. V Transformer #3 TBD 42

4. C-E. APS Planning - Study Requests • Interconnection Requests – Transmission Interconnection Requests – Generation Interconnection Requests • Transmission Service Requests • Economic Study Requests 43

4. C. Interconnection Requests • 2 Active Wires-to-Wires Interconnection requests • Active Generation Interconnection requests – APS OASIS contains Generation Interconnection Queue • • • http: //www. oatioasis. com/azps/index. html 5 Solar projects – 787. 5 MW 1 Wind projects - 200 MW 1 Wind/Solar project – 101 MW wind/60 MW solar 2 Natural Gas projects – 919 MW 1 Battery Storage – 74 MW Note: Generator Queue information as of 10/16/15 44

A - HAA-NG 500 k. V line � 2 projects � 700 MW B - Gila Bend/Buckeye � 2 projects � 654 MW F C – Metro Phx � 2 projects � 669 MW D - Saguaro G � 1 projects � 50 MW E - Douglas � 1 projects � 17. 5 MW F - Moenkopi � 1 projects � 161 MW C A G - Cholla � 1 projects � 200 MW B Note 1: Generator Queue information as of 10/16/15 Note 2: Figures displayed may not represent complete queue D E 45

4. D-E Transmission Service Requests and Economic Study Requests • 42 Transmission Service Requests that may require a SIS • Currently no Economic Study Requests 46

4. F. Submittal of additional study plan proposals • If you have study ideas for APS to consider, please send a detailed message to: apstransmission@aps. com • Please include (at a minimum) – Your Name/Company/contact info (e-mail/phone #) – What the purpose of the study request is? And how will the results be used? – What year(s) and season(s) is of interest? – What type of study – reliability (power flow only? ) economic? 47

5. Stakeholder Questions & Comments • Open discussion • Reference Material • West. Connect – – http: //www. westconnect. com/documents. php • APS OASIS – – http: //www. oatioasis. com/azps/index. html • SRP OASIS – – http: //www. oatioasis. com/srp/index. html 12/15/2015 APS/SRP Stakeholder Meeting for Transmission Planning 48

6. Action Items • Review any action items, assignments, and due dates 12/15/2015 APS/SRP Stakeholder Meeting for Transmission Planning 49